In situations where immediate funds are required and no alternative solutions are available, one can consider withdrawing money from their Employee Provident Fund (EPF). The EPF scheme is specifically designed for salaried employees, offering retirement benefits. Under this scheme, both the employee and employer contribute equally. Upon retirement, the employee receives the accumulated amount along with accrued interest. The Employees Provident Fund Organisation (EPFO) oversees the management of this scheme.
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EPFO is one of the largest social security organisations globally, serving a vast number of clients and processing a significant volume of financial transactions. It manages a staggering 24.77 crore accounts (as per the Annual Report 2019-20) belonging to its members, according to EPFO’s official website.
In the EPF scheme, the employee is required to contribute 12 percent of their basic salary each month, and the company matches this contribution. Companies with more than 20 employees are mandated to register with the EPFO. Now, let’s discuss the regulations regarding the withdrawal of funds from the EPF scheme.
Easy process
Previously, employees encountered difficulties when withdrawing funds from the EPF scheme due to the verification process. However, this process has now been simplified, eliminating the need for verification. In case of need, individuals can withdraw up to 75 percent of the funds deposited in their EPF account. Nonetheless, there are specific conditions that employees must meet to make a withdrawal.
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Online process
If your Aadhaar is linked to your UAN, you have the option to withdraw money from your EPF account online. Therefore, before initiating a withdrawal from your EPF, it is essential to ensure that your Universal Account Number (UAN) is active. Additionally, your bank account should be linked to your Aadhaar. The EPF scheme is widely regarded as an excellent means of saving for retirement, but it also allows for emergency withdrawals when necessary.
Steps for withdrawing money from the EPF account:
Step 1: Visit the official website of EPFO Member e-SEWA, and then login to your account using your UAN login details.
Step 2: Navigate to the online services section and choose the option “Claim (Form 19, 31, 10C or 10D)” from the provided list.
Step 3: Provide your bank account number and click on the “Verify” button.
Step 4: Select “Yes” to continue and then click on the “Proceed for online claim” button.
Step 5: Select the specific claim you need from the options available under the “I want to apply for” tab.
Step 6: Choose the option of PF Advance (Form 31) to initiate the withdrawal of funds from your EPF account.
Step 7: Provide the purpose of withdrawal, the desired amount, and your address in the designated fields, and finally submit your form.
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